Friday, July 24, 2020

Can Vietnam leverage its COVID-19 success for economic growth?

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Inshiya Nalawala

Article Title

Can Vietnam leverage its COVID-19 success for economic growth?

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Global Views 360

Publication Date

July 24, 2020

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A policeman helping a rider fix their mask

A policeman helping a rider fix their mask | Source: Đài Truyền Thanh TPST via Wikimedia

While the entire world is battling with COVID-19, Vietnam, in a country of over 100 million recorded just 330 cases as of early June 2020 and zero death in May 2020.

A professor at Nagasaki University’s Institute of Tropical Medicine Vietnam Research Station said that "Vietnam has no special test kits or drugs to treat the disease, but the government decided to do what it had to do at an early stage and put that plan straight into practice."

Vietnam was quick in its action. As soon as the first case was confirmed, the government had called upon measures for serious quarantine, implemented strict border control measures, and curbed unnecessary local movement. Close to a million people were isolated to halt the spread of further infections.

The strict measures helped Vietnam to quickly control the COVID situation and put the focus back on the economy. The mainstay of Vietnam's economy, garment export and tourism witnessed steep fall resulting in loss of employment to over 3.5 million people in the first half of 2020. Still Vietnam’s economy has expanded by 0.36% over last year in the same period unlike other countries in the region where it contracted as compared to last year. The annual GDP growth for Vietnam in 2020 is expected to be around 2.7% to 3% which again is the best in the region.

Vietnam , today is the safest country in the region to travel, work, or stay amidst the worldwide COVID pandemic. It is being favourably considered as an alternative destination by many companies who are looking to cut down their reliance on China in their supply chain.  The Free Trade Agreement (FTA) between the European Union and Vietnam which will be operational in August, may help Vietnam grow its exports.

Apart from export led growth, the tourism sector may also grow significantly as the other major tourist destinations in the region, Singapore and Thailand, are still battling with the pandemic, while Vietnam has successfully overcome the same.

The government is also looking to support the local business by slashing the corporate income tax to 30 percent which increased the liquidity for some sectors of economy. Special tax benefits and deferred tax payments(in some cases) are also in  line for small and medium enterprises (SMEs) which constitutes almost 97% of all the businesses in Vietnam. All these measures are expected to lead to a 7% GDP growth for Vietnam in 2021.

The miraculous recovery from the pandemic, government incentives to industry, and the willingness of many companies to relocate from China present such a perfect mix of opportunities for Vietnam to leap ahead and become the fastest-growing economies in SouthAsia. What remains is to see how fast and how effectively the country is able to act while this window of opportunity is open.

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February 4, 2021 4:37 PM

Black Life Matters: Impact on the upcoming Presidential Elections in the US

George Floyd, 46, a black man died after a white police officer, named Derek Chauvin, held him down by lodging him down by a knee on his neck for almost nine minutes. He lapsed into unconsciousness saying, “I can’t breathe” and died shortly afterwards. His death came as the latest one in the line of killings of African-Americans by American law enforcement personnel. This incident sparked nationwide protests over systematic racism, unequal treatment of Black Americans and police brutality.

These protests are expected to impact the upcoming Presidential elections in the USA which is due in November 2020. The race issue in US Presidential elections has now become equally important as health care and the economy. According to a CNN poll, “With 42% of Americans calling race relations significant to their vote for president this fall”. There is a demographic split in the votes, where 61% black voters in 2020 say that it is imperative to prioritize race relations which is a jump from 34% in 2015. The opinion also varies between the followers of political parties as 60% of the Democrats and democratic-leaning independent voters and 18% of the Republicans and Republic-leaning voters have said that race relations are extremely important. 

President Trump opposed the protests very strongly and even threatened to send federal troops into the states to curb the protests. He came up with a series of tweets on the protests which shocked the young people of America into action and went global very soon. One of these tweets read: “Get tough Democrat Mayors and Governors,”. Referring to Biden, he added: “These people are ANARCHISTS. Call in our National Guard NOW. The World is watching and laughing at you and Sleepy Joe. Is this what America wants? NO!!!”. 

President Donald Trump will have a formidable opponent in former Vice President Joe Biden who is Democratic Party candidate in the Presidential elections. Joe Biden has a good following among the Black-American voters  Recently, in an interview, Biden said: “If you have a problem figuring out whether you’re for me or Trump, then you ain’t black.” 

The tweets and other statements of Trump invoking the spectre of lawlessness and turmoil are seen as a ploy to get back suburban voters who were disgusted by his handling of the pandemic by. A law and order crisis also allows Trump to go back to his 2016 campaign, where the campaign video reads “President Trump’s not always polite. Mr Nice Guy won’t cut it.” Trump has arguably benefited from the fact that his mishandling of the pandemic was pushed out of the picture with the media coverage of protests and riots.

On the other hand, Joe Biden, in his speech said “I won’t traffic in fear and division. I won’t fan the flames of hate. I’ll seek to heal the racial wounds that have long plagued our country, not use them for political gain. I’ll do my job, and I’ll take responsibility — I won’t blame others”. Biden is also promising to address the lack of racial equality under the law, which might give his potential presidency a reform, and something that could unite the Democratic Left fully behind him. 

At the moment, there is a rise in Voter registrations, volunteer activities and donations for groups that are linked to democratic causes. The surge in registration could be beneficial to the Democratic Party candidate Joe Biden. However, the presidential election is still over four months away and Trump’s campaign is well-funded with the backing of conservative media and loyal followings. To keep up the current narrative and build on the support on its back is going to be a herculean task for Biden’s campaign team.

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